In a recent report the Productivity Commission says the Government should help the retail sector where 27% of businesses are running at a loss.
The Government has been asked to loosen regulations that result in Australian retailers continuing “to operate under several regulatory regimes – such as those relating to trading hours, and planning and zoning – that unnecessarily inflate their costs and restrict their ability to innovate".
The Commission also found that there were many cost pressures facing retailers were market driven and required commercial decisions to correct. They found that "labour costs and rent as a share of revenue appear higher in Australia relative to the United Kingdom and the United States". "The retail sector is operating in an increasingly dynamic and globalised environment, competing on different platforms and across borders," the report finds. "This has delivered better outcomes for consumers and, combined with shifts in consumer spending, has created a challenging trading environment for many retailers."
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